Return on Equity (ROE)
since 2005
Calculation
Marriott International Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Shareholders’ equity (deficit)1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 181.08% | = | 100 | × | 1,273) | ÷ | 703) |
| Dec 31, 2018 | 85.71% | = | 100 | × | 1,907) | ÷ | 2,225) |
| Dec 31, 2017 | 36.77% | = | 100 | × | 1,372) | ÷ | 3,731) |
| Dec 31, 2016 | 14.56% | = | 100 | × | 780) | ÷ | 5,357) |
| Dec 31, 2015 | — | = | 100 | × | 859) | ÷ | (3,590) |
| Dec 31, 2014 | — | = | 100 | × | 753) | ÷ | (2,200) |
| Dec 31, 2013 | — | = | 100 | × | 626) | ÷ | (1,415) |
| Dec 28, 2012 | — | = | 100 | × | 571) | ÷ | (1,285) |
| Dec 30, 2011 | — | = | 100 | × | 198) | ÷ | (781) |
| Dec 31, 2010 | 28.90% | = | 100 | × | 458) | ÷ | 1,585) |
| Jan 1, 2010 | -30.30% | = | 100 | × | (346) | ÷ | 1,142) |
| Jan 2, 2009 | 26.23% | = | 100 | × | 362) | ÷ | 1,380) |
| Dec 28, 2007 | 48.71% | = | 100 | × | 696) | ÷ | 1,429) |
| Dec 29, 2006 | 23.22% | = | 100 | × | 608) | ÷ | 2,618) |
| Dec 30, 2005 | 20.57% | = | 100 | × | 669) | ÷ | 3,252) |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-28), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2010-01-01), 10-K (reporting date: 2009-01-02), 10-K (reporting date: 2007-12-28), 10-K (reporting date: 2006-12-29), 10-K (reporting date: 2005-12-30).
1 US$ in millions
The financial performance from 2005 to 2019 is characterized by significant volatility in shareholders' equity and a corresponding dramatic fluctuation in return on equity (ROE).
- Equity Structure and Capital Deficits
- Shareholders' equity exhibited a severe downward trend during the first decade of the analyzed period. After starting at US$ 3,252 million in 2005, equity declined steadily, transitioning into a deficit position by 2011. This negative equity position persisted and deepened annually, reaching a peak deficit of US$ 3,590 million in 2015. While a substantial correction occurred in 2016, equity subsequently declined again, ending the period at US$ 703 million in 2019.
- Net Income Performance
- Net income remained generally positive and showed a long-term growth trajectory despite a notable loss of US$ 346 million in 2010. Earnings increased from US$ 669 million in 2005 to a peak of US$ 1,907 million in 2018, before decreasing to US$ 1,273 million in 2019. The ability to maintain positive net income during periods of negative equity indicates a reliance on leverage or other financing structures to sustain operations.
- Return on Equity (ROE) Analysis
- ROE experienced three distinct phases. From 2005 to 2007, a strong upward trend was observed, with ROE rising from 20.57% to 48.71%. A period of instability followed, marked by a drop to -30.30% in 2010. Between 2011 and 2015, ROE became mathematically inapplicable or omitted due to the presence of negative shareholders' equity. In the final phase, from 2016 to 2019, ROE exhibited an aggressive escalation from 14.56% to 181.08%. This exponential increase is driven by the convergence of high net income and a rapidly shrinking equity base, which artificially inflates the percentage return.
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Comparison to Competitors
Marriott International Inc., ROE, long-term trends, comparison to competitors
| Marriott International Inc. | Airbnb Inc. | Booking Holdings Inc. | Chipotle Mexican Grill Inc. | DoorDash, Inc. | McDonald’s Corp. | Starbucks Corp. | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 181.08% | — | 82.00% | 20.81% | — | — | — |
| Dec 31, 2018 | 85.71% | — | 45.51% | 12.25% | — | — | 386.34% |
| Dec 31, 2017 | 36.77% | — | 20.79% | 12.92% | — | — | 52.93% |
| Dec 31, 2016 | 14.56% | — | 21.74% | 1.64% | — | — | 47.89% |
| Dec 31, 2015 | — | — | 29.01% | 22.35% | — | 63.90% | 47.39% |
| Dec 31, 2014 | — | — | 28.27% | 22.13% | — | 37.02% | 39.23% |
| Dec 31, 2013 | — | — | 27.39% | 21.29% | — | 34.89% | 0.19% |
| Dec 28, 2012 | — | — | 36.43% | 22.31% | — | 35.73% | 27.09% |
| Dec 30, 2011 | — | — | 41.04% | 20.58% | — | 38.24% | 28.41% |
| Dec 31, 2010 | 28.90% | — | 29.09% | 22.07% | — | 33.80% | 25.73% |
| Jan 1, 2010 | -30.30% | — | 37.04% | 18.03% | — | 32.43% | 12.83% |
| Jan 2, 2009 | 26.23% | — | 26.49% | 12.56% | — | 32.23% | 12.67% |
| Dec 28, 2007 | 48.71% | — | 27.12% | 12.55% | — | 15.67% | 29.45% |
| Dec 29, 2006 | 23.22% | — | 21.36% | 8.74% | — | 22.93% | 25.32% |
| Dec 30, 2005 | 20.57% | — | 52.22% | 12.19% | — | 17.18% | 23.65% |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-28), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2010-01-01), 10-K (reporting date: 2009-01-02), 10-K (reporting date: 2007-12-28), 10-K (reporting date: 2006-12-29), 10-K (reporting date: 2005-12-30).
Comparison to Sector (Consumer Services)
Marriott International Inc., ROE, long-term trends, comparison to sector (consumer services)
| Marriott International Inc. | Consumer Services | |
|---|---|---|
| Dec 31, 2019 | 181.08% | — |
| Dec 31, 2018 | 85.71% | 284.52% |
| Dec 31, 2017 | 36.77% | 71.55% |
| Dec 31, 2016 | 14.56% | 64.84% |
| Dec 31, 2015 | — | 43.28% |
| Dec 31, 2014 | — | 33.77% |
| Dec 31, 2013 | — | 27.00% |
| Dec 28, 2012 | — | 33.45% |
| Dec 30, 2011 | — | 35.81% |
| Dec 31, 2010 | 28.90% | 31.52% |
| Jan 1, 2010 | -30.30% | 29.09% |
| Jan 2, 2009 | 26.23% | 28.45% |
| Dec 28, 2007 | 48.71% | 17.62% |
| Dec 29, 2006 | 23.22% | 22.82% |
| Dec 30, 2005 | 20.57% | 18.57% |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-28), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2010-01-01), 10-K (reporting date: 2009-01-02), 10-K (reporting date: 2007-12-28), 10-K (reporting date: 2006-12-29), 10-K (reporting date: 2005-12-30).
Comparison to Industry (Consumer Discretionary)
Marriott International Inc., ROE, long-term trends, comparison to industry (consumer discretionary)
| Marriott International Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2019 | 181.08% | 34.62% |
| Dec 31, 2018 | 85.71% | 34.33% |
| Dec 31, 2017 | 36.77% | 22.85% |
| Dec 31, 2016 | 14.56% | 28.74% |
| Dec 31, 2015 | — | 29.03% |
| Dec 31, 2014 | — | 20.60% |
| Dec 31, 2013 | — | 20.34% |
| Dec 28, 2012 | — | 21.97% |
| Dec 30, 2011 | — | 34.92% |
| Dec 31, 2010 | 28.90% | 24.34% |
| Jan 1, 2010 | -30.30% | 25.32% |
| Jan 2, 2009 | 26.23% | 1.64% |
| Dec 28, 2007 | 48.71% | 16.06% |
| Dec 29, 2006 | 23.22% | 3.84% |
| Dec 30, 2005 | 20.57% | 19.92% |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-28), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2010-01-01), 10-K (reporting date: 2009-01-02), 10-K (reporting date: 2007-12-28), 10-K (reporting date: 2006-12-29), 10-K (reporting date: 2005-12-30).